East Asia

South Korea tax rates 2026

Residents face progressive income tax to 45% (49.5% with local surtax), a newly raised 25% top corporate rate, and inheritance tax up to 50%, among the world's highest.

Worldwide (residence-based) Last verified July 2026

The taxes

South Korea tax rates
Personal income (top)	45% national (49.5% with 10% local surtax)Progressive 6–45% national tax, with the top bracket above KRW 1bn, plus a 10% local income surtax on the national amount.
Corporate income	25% top (27.5% with 10% local surtax)
Capital gains	Exempt for small holders of listed shares. Major shareholders and real-estate gains are taxed at 22–27.5%.
VAT / VAT (부가가치세)	10%
Dividends (WHT)	22% (20% + 2% local surtax) for non-residents, and 15.4% for residents.
Interest (WHT)	22% for non-residents, and 15.4% for residents.
Royalties (WHT)	22% (20% + 2% local surtax)
Social security (employee)	~9.4% (pension 4.5% + health + employment + care)
Social security (employer)	~11%+ (pension 4.5% + health + employment + industrial accident)
Wealth tax	None, though there is a comprehensive real-estate holding tax on high-value property.
Inheritance / estate	10–50% progressive, with gift tax at the same rates.
Property tax	Property tax of 0.1–0.4%, plus a comprehensive real-estate tax on high-value holdings.
Other	Local income tax adds a 10% surtax on the national income tax.

How the system works

Tax system: Worldwide (residence-based)
Foreign income: Taxed (worldwide)
Taxes by citizenship: No
Exit tax: Yes, leaving has a cost
CFC rules: Yes
CRS: Participating

A special regime for new arrivals

Foreign residents who have held a domicile in Korea for 5 years or less within the preceding 10 are taxed on foreign-source income only if it is paid in Korea or remitted to Korea. Foreign workers may elect a flat 19% rate, plus local surtax, on employment income for up to 20 years.

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.